Insurance: Solvency rules in insurance

United Kingdom
Solvency rules in insurance

The Commission has suggested some changes to the current rules on insurers' solvency margin. Whilst recognising the need not to increase insurers' costs unnecessarily, it has concluded that some insurance failures could have been avoided with a more accurate solvency margin regime. Nevertheless, for the moment at least, it rejects the "complex" and "arbitrary" risk-based capital approach of the US. However, it has not yet decided on what changes to make, saying that further investigation is necessary.